What Is the Time Frame for SBA Loan Approval?
Getting approved for an SBA loan can feel nerve-wracking when you don’t know what to expect. There are different types of loans, ranging from the SBA microloan to the SBA 504 loan. All of these vary on times depending on how much money is asked for and the purpose of the loan. Learn more to get a better idea of what to expect before applying.
Getting an SBA Microloan and How Long To Wait
SBA microloans are small amounts of money given to applicants. Because these aren’t as large as the typical loan, it makes sense they don’t take as long to get disbursed. The first and second steps of the approval can take up to a month to hear back. When it comes to getting the funds themselves, these normally take five business days.
Know How Long an SBA 504 Can Stretch
504 loans vary widely, taking up to forty-five days from the time of putting in the application to getting the amount of money needed. However, it has been reported that some applicants wait up to six months for this particular loan to be approved to them. Much of this depends on who is borrowing the money, what kind of credit and cash income they have, and what the loan is getting used for.
Understand the Waiting Difference for an SBA Disaster Loan
As expected, the SBA Disaster Loan is one of the quickest loans, given that the funds are meant to be used after some kind of emergency within the business has occurred. Much like the microloan, this loan takes about a month, with borrowers normally getting their funds within five business days after being approved.
SBA 7a Loans Depend On the Lender
The SBA 7a is another common loan used for businesses, but because it’s not for an emergency or a small amount, the process drags out up to three months when necessary. This can be bypassed by working with a lender who is SBA Preferred. Again, how fast it’s approved depends on the individual, their cash flow and credit, and what the lender is looking for.
When applying for any type of SBA loan, it’s important to note the loan, how much is being asked for, and who the borrower is choosing to work with. By knowing what’s involved for the SBA 504 and other common business loans, borrowers can get an accurate understanding of how long it takes to get approved for funds. This can help them plan accordingly, and make the most of the money they’re getting.